The cryptocurrency market is witnessing a major sell-off, with Bitcoin and Ethereum both taking a hit. The global crypto market cap has fallen to $3.7 trillion from the record high of $4 trillion seen last week, according to CoinMarketCap data. The broader crypto market has also witnessed a 0.89% decline in the last 24 hours, extending a seven-day slump of 11.5%.
The recent downturn in the cryptocurrency market can be attributed to geopolitical tensions, particularly US President Donald Trump’s decision to impose an additional 100% tariff on China. This has led to fears of a potential trade war if China retaliates. The announcement triggered cryptocurrencies’ largest liquidation worth $19 billion on October 11, as investors turned toward safe-haven assets like gold and silver amid the uncertainty.
